Nokia wins arbitration with RIM over Wi-Fi patent dispute

Nokia secured an important victory in its dispute with RIM over patents used in BlackBerry phones, and the fight could lead to blocking BlackBerry sales if the two sides cannot reach an agreement. According to Reuters, a Swedish arbitrator said, "RIM was in breach of contract and is not entitled to manufacture or sell WLAN products without first agreeing [to] royalties with Nokia."

RIM and Nokia already have a cross-licensing agreement stemming from 2003, but RIM has sought to have the agreement changed to include WLAN patents related to Wi-Fi connectivity. The Swedish arbitrator ruled in Nokia's favor, and Nokia has filed court cases in the United States and the U.K. to enforce the ruling. It has also filed in RIM's home country of Canada, which could threaten the sale of BlackBerry devices.

Analysts believe that the dispute will likely end in RIM agreeing to pay a royalty to Nokia because the company will not want to risk a sales ban as it prepares for the critical launch of its BlackBerry 10 software. RIM says that it will unveil BlackBerry 10 in January 2013, so a deal may be reached prior to that date.